Laptop imports

14-01-2024

India must not give in to the US pressure to remove import restriction from the Laptop imports

If India aims to become a mature hub for laptop production, it will have to extend restrictions on the import of laptops, PCs, and related items beyond September 2024. This is because India, as a part of its commitment to the Information Technology Agreement (ITA1) under the World Trade Organization (WTO), cannot increase tariffs on these items. Unlike the approach taken with mobile phones, where tariffs were raised to curb imports, the only feasible method for restricting laptop and PC imports in this case is through licensing. This approach would be the first step for helping domestic production.

India should not be defensive about restricting import of laptops. Mobile phones, Laptops are critical products today. Global reliance on just one country China may be harmful. Supply lines may get disrupted due to war, covid and many other reasons. COVID has demonstrated this amply for medicines. Many countries have now plans to make critical medicines. Mobile phone or Laptop are no different. In this context, India's efforts to make mobile phones, laptops etc. locally for supply to world must be welcomed.

Global firms also realising this. Most all big firms are making phones in India. 20% of Apples production will soon be from India now. Apple’s new model may be produced in India. While the component buildup will be slow, it will happen with firms like Tata’s chipping in with Apples support. Costs are high due to high import component but we are into this for long term where most components may be produced locally.